How To Get A Tax Number In Namibia

How To Get A Tax Number In Namibia

What is Tax Number?

A Taxpayer Identification Number is an identifying number used for tax purposes in the United States and in other countries under the Common Reporting Standard. In the United States it is also known as a Tax Identification Number or Federal Taxpayer Identification Number.

How To Get A Tax Number In Namibia

Step 1: To register, you need to complete a registration form, and have a copy of your identification document (ID, passport or birth certificate) to submit with the form.

Step 2: Click here to download the taxpayer registration form. Now continue to complete the form.

Frequently Asked Questions (FAQs)

What is the difference between income tax number and VAT number?

This is often confused but Income Tax Number and VAT number is two totally different tax types. Income tax registration is compulsory whereas VAT registration depends on quite a few factors. The business must however be registered for income tax before a tax clearance or VAT number can be applied for.

How do taxes work in Namibia?

Namibia has a system of self-assessment, which must include a computation of the taxpayer’s taxable income and tax payable, and the payment of tax due on the income so computed. The income tax return for salaried individuals is due on 30 June and for farmers and business individuals on 30 September.

What is the current limit for tax deductible pension deductions in Namibia?

Employee contributions to Namibian registered pension, provident, retirement annuity funds and policy of insurance for educational purposes are deductible to a maximum amount of NAD40,000 per annum.

What is the VAT rate in Namibia?

VAT is levied at the standard rate of 15% on the supply of most goods and services and on the importation of goods. It is mandatory for a person who carries on a business with an annual taxable turnover above N$500,000 to apply for VAT registration.

Does Namibia have capital gains tax?

There is currently no donations tax, estate duty or capital gains tax in Namibia. Certain capital gains are taxed as normal income.

Is government pension taxable in Namibia?

Pension and RA funds – The total lump sum is tax-free, but the annuities /pensions paid to dependants are taxable at the marginal rate. The difference being paid as annuities, will be taxable.

How do I claim tax back in Namibia?

How to claim your VAT Refund

  1. The words “Tax Invoice”
  2. The seller’s name and address.
  3. The seller’s VAT registration number.
  4. Your name.
  5. The date of issue of the tax invoice.
  6. A tax invoice number.
  7. A full description of the goods purchased.
  8. The cost of goods excluding 15% VAT.

Do you pay tax on dividends in Namibia?

Dividends. Dividends declared by a Namibian company to a non-resident person will be subject to non-resident shareholders tax (NRST), a WHT. NRST is payable at the standard rate of 10% where a company holds more than 25% shares in the Namibian company. In all other cases, NRST payable is 20%.

Who should pay tax in Namibia?

A salary earning individual who earns an income of more than N$ 40 000 per annum and non-salary income in excess of N$ 5 000 per month is liable to pay tax and should register for income tax.

How much is the old age pension in Namibia?

Namibia’s old age social pension, renamed in 1998 as Basic Social Grant (BSG), guarantees all Namibia’s residents over 60 years of age a monthly unconditional allowance of 1 100 Namibian dollars (N$) per month. It corresponds approximately US$ 78 per month lifting the grant beneficiary well above the poverty line.

Is interest income taxable in Namibia?

WTI does not apply to Namibian companies, as defined in the Income Tax Act, as interest income is taxed as part of a Namibian company’s annual income tax. Also known as Retention Tax, WTI is a form of tax where tax is deducted from interest before distributions are made to the individual.

How does housing allowance work Namibia?

Your housing allowance would have been split between a taxable and a non taxable portion on your payslip. Normally 1/3 of your housing allowance is tax free, so you are not taxed on the 1/3.

Is dividends received exempt from tax?

Dividends received by individuals from South African companies are generally exempt from income tax, but dividends tax at a rate of 20% is withheld by the entities paying the dividends to the individuals.

What is provisional tax Namibia?

The first provisional payment for income tax is due within six months from the commencement of the company’s financial year (at least 40% of tax payable at year-end is paid on first submission). The final provisional payment is due within seven months after the financial year-end of the company.

Is rental income taxable in Namibia?

premises, land, building, house, backyard flat, and office space. Income received from any agreement for the usage of the property is taxable, provided that such a property is situated in Namibia. Money paid to terminate the rental agreement is also taxable and should be included in the income for the year.

Are pension funds taxable?

What happens with my pension fund when I retire? You may take up to a maximum of one third of your savings in a cash lump sum. This cash lump sum is taxable. The balance must be used to purchase an income/annuity, and this income/annuity is taxable.